⚡ Get All Content for 20% Off ⚡

Entrepreneurs Are Working to Uber-fy the Trucking Industry. Venice, Calif.-based Cargomatic, an app that connects local shippers with local truckers, just raised $8 million in VC funding.

By Catherine Clifford

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Cargomatic | Facebook

There's the Uber of self-storage, the Uber of dining, the Uber of grocery shopping and the Uber of just about everything these days.

And now there's (more than one) Uber of trucking. While not as sexy as say, the Uber of hot man-dudes, trucking is a big business. The industry does hundreds of billions of dollars worth of business each year.

Related: 'We're the Uber of X!'

Today, Venice, Calif.-based Cargomatic, a mobile app that connects local shippers with local truckers, announced that it has raised $8 million in venture capital. The Series A round was led by Canaan Partners and included funding from Morado Venture Partners, SV Angel, Sherpa Ventures, Structure Capital, and Volvo Group Venture, among others.

Entrepreneurs Are Working to Uber-fy the Trucking Industry.

The Cargomatic platform allows local shippers and truckers to coordinate schedules and routes.
Image credit: Cargomatic

Cargomatic is focused on maximizing utilization and efficiency in the local shipping industry. The platform is designed to ensure that no truck drives anywhere empty and that a business that needs a load delivered can piggyback on a load already in transit, thereby getting its goods delivered more cheaply than hiring a truck to make a separate run. (Check out the handy little animated video embedded at the bottom of this post for a visual.)

Related: The Future of the Sharing Economy Is a World Built Like Bitcoin

"Trucking has long been an essential part of how business gets done, and the Cargomatic platform provides a win-win scenario for businesses who need to ship goods locally, and for truckers who have available capacity," says Hrach Simonian of the lead investing house Canaan Partners, according to a statement announcing the funding raise released today. Simonian will join the Cargomatic board.

Cargomatic is not the first startup to have the idea to Uber-fy the trucking industry. Another tech company, New York-based Transfix, is helping shippers and truckers automatically locate each other, minimizing waste and ideally, preventing truckers from driving with half-empty cargos.

Related: Zappos Is Bringing Uber-Like Surge Pay to the Workplace

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.